Complete the equation: Selling Price - Purchase Price equals what?

The equation "Selling Price - Purchase Price" calculates the difference between what an asset was sold for and what it was bought for. If this difference is positive, it results in a capital gain, which refers to the profit made from selling an asset for more than its purchase price. This is a fundamental concept in understanding how investments work and how returns are measured. When investors sell an asset for more than what they originally paid, the increase in value is termed a capital gain.

In contrast, if the selling price were less than the purchase price, the outcome would represent a capital loss instead. The other terms listed, such as net gain and realized gain, do not accurately reflect the direct outcome of this calculation as specific terms are often defined differently in the context of financial reporting and taxation. Therefore, capital gain is the correct term to describe the situation presented in the equation.